Loren Legarda, Son Leandro Face Probe Over P10-Billion Solar Franchise

The Office of the Ombudsman has ordered a preliminary investigation against Sen. Loren Legarda, her son Batangas 1st District Rep. Leandro Leviste and former energy secretary Alfonso Cusi over plunder and graft complaints stemming from renewable energy projects valued at P10 billion that failed to provide solar power under its congressional franchise.

At a press conference on Friday, July 31, Ombudsman Jesus Crispin Remulla confirmed that he has signed the charge sheet to commence the preliminary investigation. 

The three key personalities face complaints for non-bailable plunder, as well as multiple violations of the Anti-Graft and Corrupt Practices Act (Republic Act 3019), specifically Sections 3(e), 3(h) for conflict of interest, and 3(i).

Remulla said Leviste’s firm Solar Para sa Bayan Corp. (SPBC) secured a 25-year legislative franchise to produce and sell solar energy across the Philippines, but failed to deliver the power supply promised under the Philippine Energy Plan.

In a statement, the Office of the Ombudsman said the investigation also found that some service contracts were transferred to affiliated corporations that allegedly existed only on paper and had not commenced operations.

“All indicators point to the fact that they had no intention to fulfill contracts that they had garnered. The terminated contracts resulted in more than P10.44 billion in unpaid financial obligations to the government,” it said.

The ombudsman also pointed out the absurdity of monopolizing solar power, noting the exclusivity caused severe damage to the republic and excluded other viable investors.

“It goes against the law of God because the sun is for everyone. It seemed that they own the sun or the power of the sun to the detriment and exclusion of other Filipinos and other investors,” he said.

“Think about it: for you to use the sun’s energy, you have to seek their approval?” Remulla said, referring to the nature of the exclusive contracts, which effectively barred other investors from building solar infrastructure in the country. 

He cited an instance in his bailiwick in Cavite where a 40- to 80-hectare solar field was denied a feed-in tariff by the Department of Energy (DOE) because it had to pass through Leviste’s exclusive franchise.

The ombudsman also claimed that Leviste, instead of building the necessary infrastructure to generate electricity, merely sold the company assets and rights for massive profit.

“We have been probing ghost projects. Here, there is ghost electricity, they promised to produce electricity but they did not do it. They just sold the company for a profit and they did not deliver,” Remulla said.

He emphasized that this failure directly exacerbated the country’s energy crisis and contributed to the soaring cost of electricity. 

“This is one of the causes of the high price of our electricity,” Remulla noted. 

“Leviste should have produced solar energy when he got the franchise, but no, there was no electricity. It did not turn into electricity, we just got electrocuted,” he added.

While the contracts in question are valued at P10 billion, the ombudsman estimates that the actual economic damage to the Philippines – stemming from stunted energy projections and derailed investments – runs into the “hundreds of billions.”

The anti-graft chief also detailed Legarda’s alleged role in the anomaly, accusing her of utilizing her powerful legislative position to secure the lucrative, exclusive franchise for her son.

Leviste was only 21 years old when the franchise was obtained, a feat Remulla argues would have been impossible without intense political backing.

“It could not have been granted to a 21-year-old – Leandro was just 21 then – the franchise that was exclusive if not for the help of his mother who was chairman of the finance committee of the Senate,” Remulla said.

“She used her position to help her son acquire a franchise,” he added.

Remulla noted that fact-finding for the novel case began in January after initial instructions were laid out in November of last year, as the Office of the Ombudsman balanced the probe alongside its high-priority investigations into the flood control scam.

Loren: Baseless

Legarda denied allegations in connection with P10-billion solar power projects, insisting that the accusations are “false and baseless” and maintaining that no government money was involved.

“We have not received any communication from the Office of the Ombudsman regarding the reported preliminary investigation, but I can categorically state that the reported accusations are utterly false and baseless. No public funds were involved. We are prepared to bring out the truth,” Legarda said.

The senator said that she has consistently upheld her integrity through her years in public service. 

“All my public life since 1998, I have always upheld my integrity, which I value dearly. This baseless allegation is a smear on my person that is totally undeserved,” Legarda said.

Legarda also urged the public to carefully assess the allegations, citing their timing.

“We urge the public to be discerning, especially in light of the timing and nature of these allegations. We remain confident that once the facts are laid bare, we will be vindicated and our names cleared,” the senator said. – With an additional report from Mark Ernest Villeza